North America Rig Losses Continue as Baker Hughes Reports 15-Rig Decrease
Posted 10/10/2023 13:22
The latest rotary rig count from Baker Hughes, published on October 6, reveals a further reduction in rig numbers in North America, with a total decrease of 15 rigs week on week.
Specifically, four of these reductions came from the United States, while Canada saw 11 fewer rigs, bringing the total rig count in North America to 799. This comprises 619 rigs in the U.S. and 180 rigs in Canada.
Within the U.S. rig count of 619, 596 are classified as land rigs, 20 as offshore rigs, and three as inland water rigs. Of these, 497 are oil rigs, 118 are gas rigs, and four are categorized as miscellaneous rigs.
In the U.S., there were four fewer land rigs week on week, with five fewer oil rigs and one less miscellaneous rig. However, there were two additional gas rigs. Notable changes in specific states included Texas shedding seven rigs, while New Mexico added four rigs, and Oklahoma added two.
Canada's total rig count stands at 180, including 108 oil rigs and 72 gas rigs. The country saw seven fewer oil rigs and four less gas rigs compared to the previous week.
Baker Hughes' data reveals a year-on-year decline of 178 rigs in North America, with the U.S. accounting for the majority of the decrease, shedding 143 rigs, while Canada saw a drop of 35 rigs during the same period. Of the rigs lost in the U.S., 105 were oil rigs and 40 were gas rigs.
In its previous report released on September 29, Baker Hughes reported that North America had dropped six rigs week on week. During that period, the U.S. had cut seven rigs while Canada added one.
Despite oil prices exceeding $90 per barrel, the report suggests that drilling activity in the U.S. has not rebounded, with the oil rig count in the U.S. dropping to an 18-month low of 502 rigs.
Over the past several weeks, Baker Hughes' rig counts have demonstrated fluctuating trends, with some weeks showing minor gains or losses and others presenting more substantial changes in rig numbers.